Condensing heat recovery involves the removal of a significant quantity of heat from waste exhaust gases, to the point where the exhaust gas actually condenses and water vapor drops out as condensate. Because of recent market forces urging energy efficiency, the application of condensing heat recovery has become more popular. Condensing heat recovery systems, or “economizers,” are available as original equipment or for retrofit in a flue gas stack to allow heat energy to be recovered and used. In cylindrical economizers of the prior art, the rising flue gas enters the bottom of the economizer and is channeled upwardly across a tube bundle of a heat exchanger such that liquid condensate forms on the tubes of the heat exchanger and drops downward against the flow of the flue gas. Consequently, a portion of the condensate is re-evaporated by the hot flue gas and does not aid in heat transfer efficiency. Also, in existing designs where the exchanger tubes are in line with the exhaust gas traveling upward and the water being heated is draining downward, it is very difficult to keep the condensate from draining down into the boiler or heat source. Because the condensate is corrosive, its effect on heat source equipment is of great concern.